Headlines

A potential dispute over the wipeout of Credit Suisse Group AG’s riskiest bonds in Asia has drawn the attention of several funds experienced in financing lawsuits for retail investors, Bloomberg News reported. Burford Capital Ltd., which says it is the world’s biggest provider of commercial legal finance, is tracking the development as law firms rally aggrieved bondholders. Last week, a group of more than 60 holders in Asia filed a claim against Switzerland’s banking regulator over the decision to write down about 16 billion Swiss francs ($18.1 billion) of additional tier-one notes.

The Monetary Authority of Singapore on Friday imposed additional capital requirement on DBS Bank, the banking arm of the country's largest lender DBS Group, following the disruption of its banking services in recent months, Reuters reported. The moves follows the widespread unavailability of the bank's digital banking services on March 29 and a subsequent disruption to its digital banking and ATM services on May 5, the Monetary Authority of Singapore (MAS) said in a statement.

Italy's Treasury is open to reducing its 64% stake in Monte dei Paschi di Siena (MPS) through one or more share sales on the market, three people briefed on the matter told Reuters. Such an option, however, would only be considered if financially advantageous and as long as any significant new investor would manage the holding in line with the national interest.

Argentines withdrew over $1 billion of US dollar deposits from the banking system from late March to the end of April as speculation spread about a potential currency devaluation in the official exchange rate, Bloomberg News reported. Dollar deposits dropped from nearly $16.4 billion on March 20 to just below $15.3 billion by the end of April, a 6.7% decline, according to central bank data released Friday. In Argentina, checking accounts are denominated in pesos but savings accounts can be denominated in US dollars, a reality after decades of currency crises and runaway inflation.

India and Russia have suspended efforts to settle bilateral trade in rupees, after months of negotiations failed to convince Moscow to keep rupees in its coffers, Reuters reported. This would be a major setback for Indian importers of cheap oil and coal from Russia who were awaiting a permanent rupee payment mechanism to help lower currency conversion costs.

The International Monetary Fund’s chief capped a visit to Kenya with an enthusiastic endorsement of its economic management and expressed confidence that the cash-strapped nation would keep servicing its debts, Bloomberg News reported. Kristalina Georgieva said that in the IMF’s assessment, Kenya’s debt is sustainable and the administration of President William Ruto is moving swiftly to improve its fiscal position. The remarks come at a sensitive time for the East African nation, with some investors dumping its bonds and questioning its ability to make a $2 billion payment next year.

A European judicial team questioned Lebanon’s caretaker finance minister on Friday in an investigation related to corruption probes of the country’s Central Bank governor, officials said, the Associated Press reported. The questioning is part of a probe by a delegation from France, Germany, and Luxembourg, now on its third visit to Lebanon to interrogate suspects and witnesses in the case. Central Bank Governor Riad Salameh is being investigated abroad over several financial crimes and the laundering of some $330 million.

A company court on Thursday admitted Bank of India Ltd's petition to begin insolvency proceedings against Future Lifestyle Fashions Ltd on an alleged loan default of 4.96 billion rupees ($60.69 million), Reuters reported. The National Company Law Tribunal (NCLT), while pronouncing the order, also approved the appointment of Ravi Sethia as an Interim Resolution Professional, Future Lifestyle said in an exchange filing. Future Lifestyle is the flagship fashion business of the debt-laden Future Group.

Six weeks since the deal to rescue Credit Suisse Group AG was rushed through, at least 120 claims have been filed against the Swiss banking watchdog’s decision to wipe out about $18 billion worth of its high-risk bonds as part of the deal, Bloomberg News reported. As of May 2, the claims represent around 1,300 individual bondholders, according to a spokesman for the Swiss Federal Administrative Court. Claimants focused on a notional deadline to file of May 3.

The European Central Bank delivered the smallest interest-rate increase yet in its battle with persistently strong inflation but insisted that the move won’t be the last, Bloomberg News reported. Officials raised the deposit rate by a quarter-point to 3.25%, following three steps of double that size. The announcement matches the expectations of traders and most economists, leaving the rate at its highest level since 2008. The Governing Council said future decisions will remain data-dependent as they bring rates to levels sufficiently restrictive to return inflation to the 2% target.